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Are Investors Undervaluing Arrow Electronics (ARW) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Arrow Electronics (ARW - Free Report) . ARW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.49. This compares to its industry's average Forward P/E of 8.06. ARW's Forward P/E has been as high as 8.84 and as low as 4.69, with a median of 6.12, all within the past year.
Another valuation metric that we should highlight is ARW's P/B ratio of 1.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.40. Over the past 12 months, ARW's P/B has been as high as 1.66 and as low as 1.06, with a median of 1.32.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARW has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.29.
Finally, investors should note that ARW has a P/CF ratio of 4.37. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.60. Within the past 12 months, ARW's P/CF has been as high as 6.73 and as low as 3.54, with a median of 4.58.
These are just a handful of the figures considered in Arrow Electronics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARW is an impressive value stock right now.
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Are Investors Undervaluing Arrow Electronics (ARW) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Arrow Electronics (ARW - Free Report) . ARW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.49. This compares to its industry's average Forward P/E of 8.06. ARW's Forward P/E has been as high as 8.84 and as low as 4.69, with a median of 6.12, all within the past year.
Another valuation metric that we should highlight is ARW's P/B ratio of 1.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.40. Over the past 12 months, ARW's P/B has been as high as 1.66 and as low as 1.06, with a median of 1.32.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ARW has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.29.
Finally, investors should note that ARW has a P/CF ratio of 4.37. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.60. Within the past 12 months, ARW's P/CF has been as high as 6.73 and as low as 3.54, with a median of 4.58.
These are just a handful of the figures considered in Arrow Electronics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARW is an impressive value stock right now.